SBA Disaster Assistance in Response to the Coronavirus

West Virginia has received its official disaster declaration #16354  – WV Disaster Number WV-00052 for Economic Injury, as a result of the COVID-19 pandemic. You can view details about the declaration by clicking the first URL below.

Access to the online Economic Injury Disaster Loan (EIDL) program application in now available by clicking the second URL below. A helpful tip for making this process more organized and easier to understand is to print off a paper version to review it first. To do that you can click the third URL below (for review purposes only), as the online portal is how you will want to submit your application. Please note, you will also need to obtain copies of your most recent federal tax returns, as well.

  1. https://disasterloan.sba.gov/ela/Declarations
  1. https://disasterloan.sba.gov/ela
  1. https://disasterloan.sba.gov/ela/Information/PaperForms

What’s a EIDL?

  • The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits.
  • EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills. 
  • The interest rate is 3.75% for small businesses and non-profits is 2.75%.
  • EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower’s ability to repay.

How do I apply?

Application Filing Deadline: December 21, 2020

Disaster Loan Assistance Available: Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

Credit Requirements:

• Credit History – Applicants must have a credit history acceptable to SBA.

• Repayment – Applicants must show the ability to repay the loan.

• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.

Interest Rates: The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.750 percent.

Loan Terms: The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.

Loan Amount Limit: The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

Loan Eligibility Restrictions: Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans. Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.

Refinancing: Economic injury disaster loans cannot be used to refinance long term debts.

Insurance Requirements: To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

If your organization is a non-profit, assistance may still be available to you. Please visit https://wvpress.org/breaking-news/coronavirus-update-philanthropy-wv-opens-resource-page-to-assist-non-profits/ to learn more.

Economic Injury Disaster Loan Training for Small Businesses

The U.S. Small Business Administration’s West Virginia District Office and the West Virginia Small Business Development Center will host trainings on the Economic Injury Disaster Loan program, Economic Injury Disaster Loan Advance, and the Paycheck Protection Program. 

Due to the high volume of COVID-19 loan relief questions our office is receiving, we recommend you attend any of the below sessions to learn more before calling.

Training Schedule:

  • Friday, April 3, 2020 at 10 a.m. and 2 p.m.
  • Monday, April 6, 2020 at 10 a.m. and 2 p.m.
  • Tuesday, April 7, 2020 at 10 a.m. and 2 p.m.
  • Wednesday, April 8, 2020 at 10 a.m. and 2 p.m.
  • Thursday, April 9, 2020 at 10 a.m. and 2 p.m.
  • Friday, April 10, 2020 at 10 a.m. and 2 p.m.

Training Log On Information:

More Information:

  • Registration is not required however sessions are limited to the first 300 participants.
  • If the session is full please join a session at another time.
  • If you have trouble accessing the trainings or website, copy the links and paste them into your browser.
  • You may also contact SBA’s Disaster Assistance Center at  800-659-2955 or via email at disastercustomerservice@sba.gov, if you have a question regarding your EIDL application.

PAYCHECK PROTECTION PROGRAM

Program Overview:

  • The Paycheck Protection Program is a loan designed to help small businesses stay open and provide a direct incentive for small businesses to keep their workers on the payroll.
  • SBA will forgive portions of loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
  • The Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply:

  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
  • Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

How to Apply:

  • You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union,  and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
  • Lenders may begin processing loan applications as soon as April 3, 2020.

Loan Details and Forgiveness:

  • Portions of the loan will be forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. The SBA will not charge small businesses any fees.
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
  • This loan has a maturity of 2 years and an interest rate of 1%.
  • If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you. 

CARES ACT INFORMATION

The Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act” was introduced to provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic. Below is a list of documents with more information about the CARES Act:

COVID-19 STIMULUS BILL

Here you will find a detailed summary from the International Economic Development Council on the COVID-19 aid bill, a stimulus package designed to help the ailing economy and ease the burden on families and workers.

ATTENTION

DUE TO THE INCREASED RISK OF COVID-19, WE ARE TEMPORARILY CLOSING OUR OFFICES AS OF 4:30 P.M. MARCH 24, 2020.

We are doing our part to help reduce the risk of contamination to our public and our staff and families. We encourage small businesses to keep a watch on our Facebook for updates, but for current announcements, please visit the WV Small Business Development Center’s (SBDC) website in partnership with the SBA at: https://americassbdc.org/coronavirus-information/

For assistance with Wyoming County property taxes or license renewals contact the Wyoming County Courthouse at (304) 732-8000. Please call (304) 890-1338 and we will gladly assist you over the phone with your other business needs.